Financialization

3
Dec

slave-family

Enslaved family harvesting cotton

Reference: Hidden in Plain Sight: A Note on Legitimation Crises and the Racial Order’ By Michael C. Dawson

 

The ‘Two Exes’ Required for a Full Picture of Our Capitalism

By Nancy Fraser

New School for Social Research

With Michael Dawson, I hold that exploitation-centered conceptions of capitalism cannot explain its persistent entanglement with racial oppression. In their place, I suggest an expanded conception that also encompasses an ongoing but disavowed moment of expropriation. By thematizing that other “ex,” I disclose, first, the crucial role played in capital accumulation by unfree and dependent labor, which is expropriated, as opposed to exploited; and second, the equally indispensable role of politically enforced status distinctions between free, exploitable citizen-workers and dependent, expropriable subjects. Treating such political distinctions as constitutive of capitalist society and as correlated with the “color line,” I demonstrate that the racialized subjection of those whom capital expropriates is a condition of possibility for the freedom of those whom it exploits. After developing this proposition systematically, I historicize it, distinguishing four regimes of racialized accumulation according to how exploitation and expropriation are distinguished, sited, and intertwined in each.

Michael Dawson offers many powerful insights about the relation between capitalism and racial oppression. In this article, I aim less to dispute his claims than to develop them, while focusing on three main points. Dawson contends, first, that my expanded conception of capitalism as an “institutionalized social order” is better than more familiar conceptions for theorizing the structural imbrication of race with capitalist society. He also claims, second, that I have not realized my model’s potential in this respect. Dawson contends, finally, that were I to do so, I would have to revise my view that there is no legitimation crisis in Habermas’s sense in the United States today.

I agree emphatically with the first two points, and I welcome the occasion to develop them here. Thus, I shall devote the bulk of my response to explaining why and how my expanded view can clarify capitalism’s systemic entanglement with racial oppression—in part by building on Dawson’s own insights. I am less convinced, by contrast, of his third claim that present-day struggles over race portend a crisis of legitimation in the United States. In a brief conclusion, therefore, I shall explain my doubts about that proposition.

I. From Exchange to Exploitation to Expropriation

Capitalism is often understood narrowly, as an economic system simpliciter. Certainly, that is the mainstream view, which equates it with private property and market exchange. In part because it naturalizes and dehistoricizes those categories, this approach has been roundly criticized. Left-wing thinkers in particular have faulted it for obfuscating the system’s distinctive mechanisms of accumulation and domination. Elaborating “critiques of political economy,” they have proposed broader and far less rosy understandings of capitalism.

Undoubtedly, Marx’s is the most influential of these critiques and, to my mind, the most convincing. Famously, his account penetrates beneath the market perspective of the system’s apologists to the more fundamental level of commodity production. There it discovers the secret of accumulation in capital’s exploitation of wage laborers. Importantly, these workers are neither serfs nor slaves, but unencumbered individuals, free to enter the labor market and sell their “labor power.” In reality, of course, they have little actual choice in the matter; deprived of any direct access to the means of production, they can only secure the means of subsistence by contracting to work for a capitalist in exchange for wages. And the transaction does not redound principally to their benefit. What from the market perspective is an exchange of equivalents is from this one a sleight of hand; recompensed only for the socially necessary cost of their own reproduction, capitalism’s workers have no claim on the surplus value their labor generates, which accrues instead to the capitalist. And that is precisely the point. The crux of the system, on Marx’s view, is the exploitative relation between two classes: on the one hand, the capitalists who own the society’s means of production and appropriate its surplus; on the other, the free but propertyless producers who must sell their labor power piecemeal in order to live. This relation defines the essence of capitalism as a mode of accumulation that is simultaneously a system of domination. Capitalism, on Marx’s view, is not an economy but a social system of class domination. Its cornerstone is the exploitation of free labor by capital in commodity production.

This perspective is immensely clarifying—as far as it goes. But absent some supplementation and revision, it cannot fully explicate Dawson’s point that capitalism is deeply entangled with racial oppression. The trouble is, the Marxian perspective focuses attention on capital’s exploitation of wage labor in commodity production; in its usual guise, therefore, it marginalizes some equally fundamental processes that are bound up with that one.1 Two such processes are essential for theorizing the racial dynamics of capitalist society. The first is the crucial role played in capital accumulation by unfree, dependent, and unwaged labor—by which I mean labor that is expropriated, as opposed to exploited, subject to domination unmediated by a wage contract. The second concerns the role of political orders in conferring the status of free individuals and citizens on “workers,” while constituting others as lesser beings—for example, as chattel slaves, indentured servants, colonized subjects, “native” members of “domestic dependent nations,” debt peons, felons, and “covered” beings, such as wives and children, who lack an independent legal personality.

Evidently, both of these matters—dependent labor and political subjection—are fundamental for understanding “race.” But both are also integral to the constitution of capitalist society. In a nutshell, as I shall explain, the subjection of those whom capital expropriates is a hidden condition of possibility for the freedom of those whom it exploits. Absent an account of the first, we cannot fully understand the second. Nor can we fully appreciate the nonaccidental character of capitalism’s historic entanglement with racial oppression.

To develop this claim, I shall draw on my expanded conception of capitalism, which is broader even than Marx’s. In place of the two-level picture he gave us, which comprises the apologists’ level of exchange plus the “hidden abode” of exploitation, I shall make use of a three-tiered model, which also encompasses the even more obfuscated moment of expropriation. By adding this third, noncontractual “ex,” I shall disclose the centrality of racialized dependent labor to capitalist society. The effect will be to shift our gaze from the political economy theorized by Marx to the latter’s “non-economic” conditions of possibility. From that perspective, capitalism appears as an institutionalized social order in which racialized political subjection plays a constitutive role. Together, these revisions will provide at least some of the conceptual resources we need to clarify capitalism’s deep-seated entanglement with racial oppression.

II. Expropriation as a Mode of Accumulation

Let me begin with expropriation. Distinct from Marxian exploitation, but equally integral to capitalist development, expropriation is accumulation by other means. Dispensing with the contractual relation through which capital purchases “labor power” in exchange for wages, expropriation works by confiscating capacities and resources and conscripting them into capital’s circuits of self-expansion. The confiscation may be blatant and violent, as in New World slavery—or it may be veiled by a cloak of commerce, as in the predatory loans and debt foreclosures of the present era. The expropriated subjects may be rural or indigenous communities in the capitalist periphery—or they may be members of subject or subordinated groups in the capitalist core. They may end up as exploited proletarians, if they’re lucky—or, if not, as paupers, slum dwellers, sharecroppers, “natives,” or slaves, subjects of ongoing expropriation outside the wage nexus. The confiscated assets may be labor, land, animals, tools, mineral or energy deposits—but also human beings, their sexual and reproductive capacities, their children and bodily organs. The conscription of these assets into capital’s circuits may be direct, involving immediate conversion into value—as, again, in slavery; or it may be mediated and indirect, as in the unwaged labor of family members in semi-proletarianized households. What is essential, however, is that the commandeered capacities get incorporated into the value-expanding process that defines capital. Simple theft is not enough. Unlike the sort of pillaging that long predated the rise of capitalism, expropriation in the sense I intend here is confiscation-cum-conscription-into-accumulation.

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